Thursday, January 5, 2012

India's New Supermarkets Break With Tradition

Humans, regardless of culture, feel very comfortable with the their traditions. It's what we call the comfort zone of familiarity. This reaction holds true with the new western supermarkets that are becoming a part of the Indian retail landscape in 2012. These are retail chains that will have a dramatic effect on the $300 billion-a-year retail trade.

For India's 700 million villagers, the supply chain will change and new ties will be forged between cities and villages. Farmers will be encouraged to grow quality crops at higher yields and the new supply chains will help them retain higher profits. With increased profits, farmers will finally be able to invest in new technology.

Change is difficult and stressful because it can force people and industries to change. For India, the decision to move forward rather than leave things as they is positive. Without these changes, the farmers and retailers would continue to cope with India's 40 percent produce perishable rate, low margins, and low yields.

This difficult road has the potential to bring tremendous positive changes to an industry that is still operating the way many farmers have operated 500 years ago.

We wish them well.